Assessing supply chain robustness to links failure

Abstract

Supply chain networks need to respond efficiently to operation disruptions, as one of their aims is to guarantee the on time delivery of products. Hence, robustness has become one of the important issues to consider when designing supply networks. There are alternative ways to measure what robustness means in this context. In this paper, we propose a new metric based on the effect on service level of the collapse of active transportation links. Numerical experiments are carried out to understand how different design factors affect robustness. Robustness under a targeted attack is compared with robustness to random failures. Results show that flow complexity (i.e. the number of potential transportation links between supply network nodes) is the most influential factor affecting supply network and its robustness, as well as the service level that can be maintained after disruptions. Thus, diversification both in supply sources and transportation routes seems to be key to robustness.

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